Tune Hotels Regional Services Sdn Bhd, the budget hotel chain owned by Tony Fernandes, head of Southeast Asia’s biggest low-cost carrier, may go public in early 2013 to expand its hospitality network, its chief executive officer said.
Tune Hotels, a unit of investment company Tune Group led by Fernandes, aims to have as many as 60 hotels across 10 countries including the U.K. and India by the end of 2012, said Mark Lankester, CEO of the hospitality group. The goal is to operate 100 by 2014, he said.
“We need to raise more capital to invest and continue the brand-growing,” Lankester said in an interview yesterday. “For us to continue growing, the cheapest capital is always going to be public capital. Securing public capital through an IPO makes a lot of sense.”
Fernandes, 46, is aiming to repeat his success with AirAsia Bhd., which was listed in 2004 and overtook national carrier Malaysian Airline System Bhd last year to become the country’s biggest airline by market value. AirAsia’s shares have doubled in the past year, while Malaysian Air has fallen 18 per cent.
AirAsia has said it intends to spin off and list its Thai and Indonesian units this year, while its long-haul associate AirAsia X Sdn Bhd may sell shares in Europe and Asia in 2012.
Tune Group, which Fernandes co-founded with AirAsia’s Deputy CEO Kamarudin Meranun, invested in businesses ranging from hotels, prepaid mobile-phone services to online financial products.
Reinvesting Income
Petaling Jaya-based Tune Hotels, which is profitable, has been reinvesting its income to grow the business, Lankester said, without disclosing its earnings. The company is preparing itself for an initial public offering and has yet to decide which stock exchange it would be listed on.
Tune Hotels has expanded to 12 properties in Malaysia, Indonesia and the U.K. since the opening of its first hotel in downtown Kuala Lumpur four years ago. Development deals are signed to add another 90 assets in Southeast Asia, Australia, London and India, Lankester said.
While the company owns most of the hotels currently under operation, it has accelerated the expansion through partnerships and franchise arrangements, he said. Tune Hotels teamed up with U.K.-based investment company Queensway Group Ltd. last year to develop and run 15 properties across in the London area by 2017, and it’s working with Apodis Hospitality Group to invest in 20 Indian hotels, he said.
Fernandes entered the airline business by mortgaging his home and digging into savings to buy then AirAsia for RM1 (33 US cents) in 2001, assuming its debts and two ageing Boeing Co planes. He now has a net worth of US$470 million, according to Forbes magazine, and is also principal of the Lotus F1 Racing team. -- Bloomberg
Tune Hotels, a unit of investment company Tune Group led by Fernandes, aims to have as many as 60 hotels across 10 countries including the U.K. and India by the end of 2012, said Mark Lankester, CEO of the hospitality group. The goal is to operate 100 by 2014, he said.
“We need to raise more capital to invest and continue the brand-growing,” Lankester said in an interview yesterday. “For us to continue growing, the cheapest capital is always going to be public capital. Securing public capital through an IPO makes a lot of sense.”
Fernandes, 46, is aiming to repeat his success with AirAsia Bhd., which was listed in 2004 and overtook national carrier Malaysian Airline System Bhd last year to become the country’s biggest airline by market value. AirAsia’s shares have doubled in the past year, while Malaysian Air has fallen 18 per cent.
AirAsia has said it intends to spin off and list its Thai and Indonesian units this year, while its long-haul associate AirAsia X Sdn Bhd may sell shares in Europe and Asia in 2012.
Tune Group, which Fernandes co-founded with AirAsia’s Deputy CEO Kamarudin Meranun, invested in businesses ranging from hotels, prepaid mobile-phone services to online financial products.
Reinvesting Income
Petaling Jaya-based Tune Hotels, which is profitable, has been reinvesting its income to grow the business, Lankester said, without disclosing its earnings. The company is preparing itself for an initial public offering and has yet to decide which stock exchange it would be listed on.
Tune Hotels has expanded to 12 properties in Malaysia, Indonesia and the U.K. since the opening of its first hotel in downtown Kuala Lumpur four years ago. Development deals are signed to add another 90 assets in Southeast Asia, Australia, London and India, Lankester said.
While the company owns most of the hotels currently under operation, it has accelerated the expansion through partnerships and franchise arrangements, he said. Tune Hotels teamed up with U.K.-based investment company Queensway Group Ltd. last year to develop and run 15 properties across in the London area by 2017, and it’s working with Apodis Hospitality Group to invest in 20 Indian hotels, he said.
Fernandes entered the airline business by mortgaging his home and digging into savings to buy then AirAsia for RM1 (33 US cents) in 2001, assuming its debts and two ageing Boeing Co planes. He now has a net worth of US$470 million, according to Forbes magazine, and is also principal of the Lotus F1 Racing team. -- Bloomberg
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Most self catering accommodation is designed to give you total freedom over your holiday – while giving you everything you need to make the stay comfortable.
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